India Battery Energy Storage System Market

The India Battery Energy Storage System Market is valued at USD 3.76 Billion in 2024 and is projected to reach a value of USD 12.88 Billion by 2035 at a CAGR (Compound Annual Growth Rate) of 11.90% between 2025 and 2035.

Key Highlights of India Battery Energy Storage System Market

• The renewable energy sector in India is witnessing a surge in demand for energy storage solutions, particularly lithium-ion batteries, owing to their cost-effectiveness and suitability for integration with renewable power projects.
• The market for Battery Energy Storage System in India is poised for significant growth due to government incentives, renewable energy targets, and rising consumer demand for clean energy.
• Indias pro-environment stance and subsidies make it an appealing destination for foreign firms in the clean energy sector, offering promising investment opportunities.

India Battery Energy Storage System Market Government Initiatives:

• India is committed to reducing its emission intensity by 33-35% from 2005 levels by 2030, targeting 40% electricity generation from non-fossil fuels. Achieving this involves expanding renewable energy (RE) capacity to between 350 and 500 GW by 2030, beyond the ongoing 175 GW RE target by 2022. However, integrating this massive RE capacity, often intermittent, into the power grid presents significant challenges.
• Policymakers in India, recognizing the challenges of integrating intermittent renewable energy into the power grid, have taken a proactive stance by investing in energy storage systems (ESS). In 2023 alone, India awarded over 8 GW of ESS tenders, signalling a robust growth trajectory for the sector. The Central Electricity Authority estimates that by 2030, India will require approximately 42 GW of battery-based ESS (BESS) and 19 GW of pumped hydro storage (PHS).
• The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given its seal of approval to the Battery Energy Storage Systems (BESS) Scheme. This scheme, aiming to develop 4,000 MWh of Battery Energy Storage System projects by 2030-31 through competitive bidding, is a significant step towards making stored renewable energy cost-effective. With an initial allocation of INR 94 billion (USD 1.129 billion) and budgetary support of INR 37.6 billion (USD 451.95 million), the schemes viability gap funding (VGF) aims to reduce the Levelized Cost of Storage (LCoS) to INR 5.50-6.60 per kWh, making it a practical option for managing peak power demand. At least 85% of Battery Energy Storage System project capacity will be allocated to power distribution companies (Discoms), enhancing renewable energy integration and optimizing transmission networks. This will reduce the need for expensive infrastructure upgrades.
• The Indian government also focuses on policy support to drive the battery energy storage market. Initiatives include various thermal and renewable projects to boost power capacity additions. The installed renewable energy capacity increased from 76.37 GW in March 2014 to 167.75 GW in December 2022. In FY 2022-23, Indias renewable energy generation grew by 19%, producing 203,552 million units (MU). By 2030, the installed battery energy storage capacity is expected to reach 38 GW, with several projects planned to integrate ESS into renewable power projects.
• Moreover, international collaborations, such as the Energy Storage Task Force established between the United States Department of Energy and Indias Ministry of Power, aim to accelerate the deployment of energy storage technologies, supporting Indias transition to a clean energy future. These government policies are critical drivers for the markets growth in the coming years.

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The India Battery Energy Storage System market can be categorized as Battery Type, Connection Type

Key Trends

1. The renewable energy sector in India is witnessing a surge in demand for energy storage solutions, particularly lithium-ion batteries, owing to their cost-effectiveness and suitability for integration with renewable power projects.
2. With Indias ambitious targets for solar energy capacity expansion, theres a crucial need for energy storage systems to manage the intermittency of solar power supply. Lithium solar batteries serve as a viable solution by storing excess solar energy for later use.
3. Agratas Energy Storage Solutions Private Limited, a subsidiary of Tata Group, signed an agreement with the Gujarat government to establish Indias first gigafactory for lithium-ion batteries. This significant investment of USD 1.57 billion indicates the strategic focus on domestic manufacturing to meet the growing demand.
4. The Indian governments initiatives, along with partnerships between public and private entities, are driving the development of energy storage projects like the Ramagiri Solar-Wind-Hybrid project in Andhra Pradesh. Such collaborations are pivotal in advancing energy storage infrastructure and fostering market growth.

Premium Insights

To effectively integrate large-scale renewable energy (RE) into the national grid, implementing energy storage systems is crucial. Proper planning, technological advancements, and achieving economies of scale are essential for standalone storage to support Indias future RE growth. Among energy storage technologies, Battery Energy Storage Systems (BESS) stand out for their flexibility, rapid response to supply and demand fluctuations, higher cycle life, and smaller physical footprint. Battery Energy Storage System offer long-term reliability, environmental friendliness, and scalability, making them adaptable to various applications. With their modularity, Battery Energy Storage System provide a versatile and sustainable solution to meet our evolving energy needs.

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India Battery Energy Storage System Market: Top Three Projects

Tata Power Solar Systems Limited (TPSSL) Project

Commissioned in Rajnandgaon, Chhattisgarh, this project is Indias largest Solar and Battery Energy Storage Systems initiative. With a 100 MW Solar PV Project coupled with a 120 MWh Utility Scale Battery Energy Storage System, it was completed by TPSSL, a subsidiary of Tata Power Renewable Energy Limited. Utilizing cutting-edge Bifacial Mono Crystalline technology, it was executed on an EPC basis from the Solar Energy Corporation of India Ltd. (SECI), facing challenges like unsuitable soil conditions and remote locations.

AES-Mitsubishi Rohini Battery Energy Storage System

Located in Rohini, NCT, India, this project boasts a 10,000kW lithium-ion battery capacity with a storage capacity of 10,000kWh. Developed by Mitsubishi and AES (India), it utilizes cutting-edge lithium-ion battery technology. Announced in 2018, it is set for commissioned in 2019, promising significant contributions to the regions energy storage capabilities.

Modhera Sun Temple Town Solar PV Park Battery Energy Storage System

Situated in Modhera, Mehsana, Gujarat, India, this project stands out with its 6,000kW lithium-ion battery capacity and 15,000kWh storage capacity. Launched in 2020 and commissioned in 2021, it demonstrates the rapid advancement in energy storage technology. Its integration with a solar PV park underscores its role in enhancing renewable energy utilization.

India Battery Energy Storage System Market Foreign Investment Overview

India stands out as the worlds third-largest energy consumer and ranks fourth globally in renewable energy capacity. With a current renewable energy capacity of 168.96 GW as of February 2023, India aims to reach 500 GW by 2030. This ambitious goal is driving the demand for battery energy storage systems (BESS), crucial for stabilizing renewable energy supply. Battery Energy Storage System is essential for peak load management, self-consumption optimization, and backup power during outages. The market for Battery Energy Storage System in India is poised for significant growth due to government incentives, renewable energy targets, and rising consumer demand for clean energy. Foreign investors have an attractive entry point through initiatives like the Viability Gap Funding Scheme and favourable policies allowing up to 100 percent FDI in renewable energy projects. Indias pro-environment stance and subsidies make it an appealing destination for foreign firms in the clean energy sector, offering promising investment opportunities.

Recent Market Developments

• In June 2023, The Indian government will offer USD 455.2 million as incentives to companies for installing 400 MWh battery energy storage projects. The government intends to reach its 2030 goal of 500 MW of renewable capacity.
• In April 2023, Grid Trust completed its first battery energy storage system (BESS) project using solar panels at the Dhule substation in Maharashtra, India.
• In March 2024, Tata Power Solar Systems Limited (TPSSL), a fully integrated solar company in India and a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL), successfully commissioned the country’s largest Solar and Battery Energy Storage Systems (BESS) project, which comprises a 100 MW Solar PV Project coupled with a 120 MWh Utility-Scale Battery Energy Storage System (BESS) at Rajnandgaon in Chhattisgarh.